2 November 2004 -- Iranian President Mohammad Khatami says he is optimistic that talks with the European Union would yield a solution to the dispute over Tehran's nuclear program that Washington says is a covert bid for atomic arms.

Khatami told reporters in Tehran today that if the EU accepts his country's right to produce nuclear technology for peaceful purposes, Iran would be ready to assure the world that it will not pursue nuclear weapons.

The EU has given Iran a timetable to freeze all uranium enrichment activities before the end of this month or face being reported to the UN Security Council for possible sanctions.

Enriched uranium can be used as reactor fuel or, if enriched further, to make nuclear weapons.